“According to a U.S. Bank study, 82 percent of business failures are due to poor cash management” |
As per the Credit & Collections Global Benchmarking Study Whitepaper by SUNGUARD, 77% of companies with revenue less than $1 Billion and 87% of companies with revenue greater than $1 Billion adopt DSO as a basic KPI to evaluate the effectiveness and efficiency of their credit and collections process. |
In a 2018 survey by Atradius, business to business (B2B) companies reported that overdue invoices represented 50% of all receivables. -Forbes |
Collections operations can be improved with the help of the right technology.
Incorporating technology is no longer the future of the collections process, but rather the present. Technology tools allow you to access all data, analysis, strategies, correspondence, and information easily.
Two pressing problems that stand in the way of transformation:
Let’s discuss some factors that are crucial to take into account when looking for a solution,
Reduction in human error: Look for workflow automation, preferably a collections tool/platform that automatically prioritizes and assigns collections activities to analysts based on predefined business rules that are unique to your company. This tool should also be able to extend internal and external team collaboration and automate dunning correspondence. All businesses, even those in the same industry, have unique challenges, making it crucial to have a customizable tool for your company.
Centralized data & process visualization: Data centralization and improved task and workflow visualization go hand in hand. The ability to manage promises-to-pay, tasks and reminders for each account not only helps analysts perform more effectively and minimizes errors but also gives AR leaders the ability to take preventive actions proactively.
Ease of implementation: ERP integrations can synchronize workflows and improve collaboration between teams. Therefore, it’s not just important but crucial that one considers a system that is easy to integrate with ERP, accounting software, and other systems to realize the full potential of AR optimization. This reduces the amount of manual input required and the time that it takes for tasks to be completed.
By streamlining the AR process with technology, CFOs can now focus on strategy and planning rather than fire-fighting mistakes caused due to delayed or manual tasks, lack of real-time insights, lack of real-time cooperation, and non-standardized processes.
The ideal collections management solution encompasses all the features discussed in the previous section and provides scalability in terms of the evolving market trends and changing economy. HighRadius Collections Cloud solution provides a complete set of tools to optimize and automate the collections management process. All the information you need like invoices, dispute information, proofs of delivery (PODs), claims, tracking info, etc. on each case is automatically presented in the collections work space and ready to use with a single click.
To learn more about HighRadius collections cloud and how they can benefit your business – talk to our experts today.
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.